Best Dividend Stocks to Invest in Under $350 at Present
In the realm of income-focused investments, a handful of stocks trading under the $200 mark have caught the eye of investors. These include Canadian Natural Resources (CNQ), Toronto-Dominion Bank (TD), McCormick & Co. (MKC), Atmos Energy (ATO), and Enterprise Products Partners (EPD), all favourites for their reliable dividend payouts and potential for capital gains.
Let's delve into three of these picks, starting with AbbVie (ABBV). This drugmaker offers a forward dividend yield of 3.44% and has grown its dividend by an impressive 310% since its spin-off from Abbott Labs in 2013. AbbVie's shares trade at 15.4 times forward earnings, a figure that is below both the S&P 500 and healthcare sector averages. Its PEG ratio, a measure of a stock's price-to-earnings ratio adjusted for growth, stands at a low 0.4, suggesting that its growth makes the stock look like an even better bargain.
AbbVie's business is resilient, with two newer autoimmune disease drugs expected to soon generate combined sales that top Humira's peak sales. This resilience, coupled with a forward dividend yield of 3.44%, makes AbbVie an attractive choice for income-focused investors.
Next, we have Dominion Energy, a major player in the renewable energy industry. This company provides electricity to 3.6 million customers and natural gas to around half a million customers, making it a significant player in states with growing populations, including its home state of Virginia, which hosts the world's largest data center market. Dominion Energy's forward dividend yield is 4.58%, and its business is considered stable due to the essential nature of its services.
Dominion Energy is a regulated monopoly in the markets it serves, ensuring a steady income stream. Moreover, the company has increased its dividend for 43 consecutive years, a testament to its commitment to shareholders.
Lastly, Realty Income, trading under $200, offers a forward dividend yield of 5.58%. This real estate investment trust (REIT) has a diversified portfolio of properties, many leased to businesses resilient to economic downturns and e-commerce threats. Realty Income pays the dividend monthly and has increased its dividend for 30 consecutive years and 110 consecutive quarters, making it a Dividend King.
Investing in dividend stocks under $200 per share can be a smart move for income-focused investors. These three picks - AbbVie, Dominion Energy, and Realty Income - provide consistent and growing dividend payments, strong underlying business fundamentals, and potential for capital appreciation. Reinvesting dividends and incremental share purchases can compound returns over time, helping build wealth from income streams.
Investing in AbbVie, Dominion Energy, and Realty Income, all of which trade under the $200 mark, is advantageous for personal-finance strategies focused on income. AbbVie's business resilience, coupled with a high forward dividend yield, makes it an appealing option for investors. Dominion Energy, with its stable business due to essential services and a long-standing history of dividend increases, is another strong pick. Realty Income, a Dividend King, offers a substantial forward dividend yield and a diversified portfolio, providing support during economic downturns. These stocks, with their consistent and growing dividend payments, strong fundamentals, and potential for capital appreciation, can help build wealth from income streams through reinvested dividends and share purchases.
